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US adds 850,000 jobs in June, exceeding expectations

US jobs

The United States has added new 850,000 jobs during June, exceeding expectations, according to official data issued by the US Department of Labor.

The reason for the increase is due to the rise in demand for a wide range of services, after being disrupted by the outbreak of the Coronavirus pandemic last year.

While unemployment rate recorded a slight increase of 5.9%, according to the report, the monthly results of new jobs exceeded economists’ expectations, which did not exceed 700,000.

Many Americans are still unable to return to the labor market. As such, the labor force participation rate remains at about 61.6% in the US.

However, strong employment gains in sectors hard hit by the pandemic, and a sharp decline in the number of Americans working part-time and preferring to work full-time, point to an accelerated recovery from the pandemic.

The leisure and hospitality industry had the lead in the number of new jobs in June, with gains of 343,000, a promising sign for a sector exhausted by the pandemic.

Restaurants and bars added 194,000 new jobs, followed by hotels with new 75,000, and arts, entertainment and recreation with 70,000.

Local government education added 155,000 new jobs, and employment in professional and commercial services increased 72,000 new jobs and retail trade added new 67,000 jobs.

Slight improvement

In early June, the US labor market added a slight improvement compared to the previous month, after adding 559,000 jobs in May, according to Labor Department figures.

Economists expected about 671,000 new jobs to be added, a big step up from the disappointing 266,000 added in April.

The unemployment rate fell to 5.8% from 6.1% the previous month.

While job gains did not match Wall Street expectations, the report will be good news for the Joe Biden administration, following April’s numbers, which came in at only a quarter of the expected level.

The latest figures point to a steady improvement in the US labor market, although it is not showing a recovery as quickly as the administration would like.


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